Assetz Capital has outlined its criteria and rates under the recovery loan scheme (RLS).
The platform, which was accredited to the scheme earlier this month, will provide development finance from £1m to £10m at rates starting at 6.99 per cent per annum and commercial mortgages from £250,000 to £10m at rates starting from 5.99 per cent per annum.
Assetz Capital said the loans are being offered as fixed rates without early settlement fees and the amount the platform’s RLS loans cost will depend on the amount of money the borrower wants, the interest rate and loan term.
The platform said it charges a one-off completion fee when borrowers take out a loan and the interest rate will be calculated based on a number of factors, including their credit score and financials for business lending.
Assetz Capital said for development finance, borrowers have up to two years to repay and with commercial mortgages, up to five years. Under the RLS, borrowers will have to repay any fees upfront and interest from the start.
The platform said that borrowers can get an RLS loan if they already have taken out a government scheme loan and there is no requirement to refinance any existing government debt such as a bounce back loan.
It said the maximum borrowers can borrow is 25 per cent of their annual turnover, and this cap includes any outstanding debt under the coronavirus business interruption loan scheme, coronavirus large business interruption loan scheme or the RLS.
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Assetz Capital said above £250,000, the maximum amount that can be covered under RLS is capped at 20 per cent of the outstanding balance of the RLS facility after the proceeds of business assets have been applied and no personal guarantees can be held over principal private residences.
The platform said that businesses can apply for its RLS loans to access cashflow, purchase equipment, help with payroll, grow their business, pay a one-off cost or invest in marketing. Assetz Capital said it will offer a business the choice of a commercial non-RLS loan if one is available on better terms than an RLS loan.
The platform said businesses applying for an Assetz Capital RLS loan need to provide evidence to show they can afford to repay it, which is likely to include management accounts, business plans, historic accounts and details of assets.